Trump Cancels ‘Punitive’ Tariffs on India After Its Pledge to Stop Buying Russian Oil

SadaNews Economy - U.S. President Donald Trump made a decision late Friday to Saturday to cancel an additional 25% tariff that was previously imposed on Indian goods due to New Delhi's continued purchase of Russian oil, coinciding with the commencement of a trade agreement reached between the two sides this week.

According to an executive order signed by Trump, "India has pledged to stop importing Russian oil, whether directly or indirectly."

New Delhi also announced its intention to purchase American energy products and its commitment to "a framework with the United States to expand defense cooperation over the next ten years," as stated in the executive order.

The additional U.S. tariffs of 25% will be lifted at 12:01 AM Eastern Time on Saturday.

This decision follows days after Trump announced a trade agreement with India that calls for reducing tariffs on Indian goods in return for Prime Minister Narendra Modi's pledge to stop buying Russian oil due to the war in Ukraine.

The agreement also stipulates that Washington will reduce the so-called "reciprocal" tariffs on Indian products to 18%, down from 25%.

A joint statement issued by the White House added that India aims to purchase energy products, aircraft, precious metals, technology products, and coal from the United States worth $500 billion over the next five years.

This agreement eases the tensions that had persisted for months between Washington and New Delhi regarding the purchase of Russian oil, which Trump believes funds a conflict he seeks to end.

The agreement also re-establishes the close relationship between Trump and Modi, a right-wing populist leader whom the U.S. president once described as "one of my dear friends."